What is Lendsqr, and how does it work?

Every day, thousands of businesses rely on Lendsqr to start and scale their loan businesses, from small-scale lenders, microfinance institutions, and commercial banks. With a comprehensive suite of tools, Lendsqr empowers lenders to focus on growth and profitability while effortlessly managing their loan portfolios.

So what is Lendsqr, and how does it work? What makes Lendsqr the go-to platform for lending? Explore its key features and how they can help you build a thriving loan business.

What is Lendsqr?

Lendsqr is a loan management platform that helps you automate and digitize how you lend money online and offline. Some people call it the Shopify for lenders. But we sometimes prefer to think we’re the operating system for lenders. Microlenders, MFIs, and Banks use Lendsqr to run their loan businesses and workflows; starting from loan origination, collection, and sometimes, recovery.

With Lendsqr, you can start your first loan business and lend to thousands in minutes. Start your journey with a free trial.

How Lendsqr works

Lendsqr’s tools and products work together as a unified system that simplifies lending and helps you reach customers and partners wherever they are. Whether managing a small loan business or scaling a large institution, Lendsqr equips you with everything you need to run a successful lending business.

Let’s walk you through the process:

Onboarding lenders

Getting started with Lendsqr is simple. Visit the Lendsqr website, Click the “Create a free account” button to sign up, and provide some basic details:

• Your full name
• A valid mobile number
• Email address

Next, select your business role and location. You’ll then verify your email and phone number to complete the initial setup.

You don’t need to have all your business documents ready to sign up. Once registered, you can customize the platform to suit your needs — set up loan products, define interest rates, and configure repayment schedules.

Setting up a lending shop

Lendsqr provides a ready-to-use web application for lenders, allowing you to start originating loans  quickly. Here’s how you can set up your lending services and make the most of the platform:

Upon signing up on Lendsqr, you’ll receive a dedicated web app that serves as an app for your customers to request loans. It’s also powerful enough to serve as a digital banking app for larger microfinance institutions. To find your web app link:

• Click the logo at the top right corner of the admin console.
• Copy the link from the modal or open it directly to sign up.

Share the link with your customers to enable them to apply for loans and manage their accounts.

Steps to get your lending shop running

• Add your first customer: Start by manually creating a customer in the Lendsqr admin console.
• Use the default loan Product – Lendsqr provides a ready-made loan product with preset decision parameters, allowing you to book a loan for your first customer immediately.
• Process the loan application: After you book the loan on the customer’s behalf, review the details and approve it.
• Expand your reach: Now that your first loan is booked, share your web app link across different channels to attract more borrowers who can then apply on their own.
• Customize your web app: Personalize your web app with your branding, including your logo, colors, and loan offerings,

Loan origination, application, and approval

Lendsqr simplifies the loan application and approval process for lenders and borrowers, ensuring efficiency and transparency at every step.

Through the lender’s web app, borrowers can:

• View available loan offers.
• Submit loan applications, including personal details, employment information, and educational background.
• Upload KYC documents as required.
• Link a debit card for loan repayments.
• Provide bank statements, if needed.

Once an application is submitted, Lendsqr evaluates it using advanced algorithms. These algorithms assess the borrower’s creditworthiness, risk profile, and repayment ability based on the lender’s decision model. Lenders can approve or reject loans manually, reviewing applications individually on the admin console. They can also use Lendsqr’s automated processes to approve or decline loans based on predefined criteria, ensuring faster turnaround times.

Loan disbursement

Lendsqr ensures a smooth and transparent loan disbursement process, enabling lenders to fund borrowers quickly and efficiently.

How disbursement works

• Lendsqr integrates with multiple payment providers like Plaid, Wise, Zelle, and ESICIA, allowing lenders to easily configure their loan disbursement without additional setup. We’ve handled the backend work, so you can focus on lending.
  
• For Nigerian lenders, each disbursement account comes with a virtual account number. Lenders fund this account, and once a loan is approved, the money moves to the borrower’s in-app wallet. Borrowers can then transfer it to their bank accounts.

Loan management and recovery

Lendsqr provides tools for both lenders and borrowers to track loan repayments. Borrowers can view their repayment schedules, while lenders monitor repayments, overdue payments, and defaults.

For repayments, Lendsqr integrates with Stripe (global card payments), Rotessa (Canada), GoCardless, Paystack, and Flutterwave. Nigerian lenders can also use Direct Debit via NIBSS and Remita to automate collections.

To reduce missed payments, Lendsqr sends reminders through multiple channels, keeping borrowers informed about upcoming and overdue payments.

Customer support

Lendsqr provides a robust customer support system to address the needs of both lenders and borrowers. Borrowers can access built-in support tools such as live chat, FAQs, and a ticketing system to resolve issues or seek guidance. Lenders can also benefit from these tools, ensuring their operations run smoothly and their customers receive prompt assistance.

To help lenders establish strong customer support within their organizations, Lendsqr offers specialized training sessions for support teams. These sessions cover effective complaint handling, issue resolution, and platform-specific guidance.

If you’re interested in scheduling a support training session, contact Lendsqr’s product specialists at [email protected].

Also read: Why Lendsqr is the most affordable loan management software

Plans and Pricing

Lendsqr offers a flexible and transparent pricing designed to accommodate lenders at various stages of growth.

• Free plan: This entry-level option is ideal for small-scale or new lenders. It includes core features such as loan management, decision models, disbursements, and a web-based platform—making it a no-cost way to start digital lending.
  
• Pro plan ($200/month): This plan, tailored for expanding businesses, includes all the features of the Free Plan plus added functionality such as offer letters, customization options, and an Android mobile app to enhance borrower engagement.
  
• Business plan ($500/month): This plan, targeted at mid-sized lenders, builds on the Pro Plan with additional features, including modules for referrals, savings, and investments. It also includes a white-label mobile app for enhanced branding opportunities.
  
• Enterprise plan: Designed for large-scale lenders, this plan provides full customization, integrations with core banking systems or ERP software, and tools to build a comprehensive lending ecosystem.

This tiered pricing structure ensures lenders can start with no upfront costs and scale their services affordably as their operations grow. For detailed information about each plan, visit the Lendsqr website or email [email protected].

Rewriting the rules of lending

Whether you’re a first-time lender or an industry veteran, Lendsqr strips away the noise, leaving you with a clean, powerful platform to grow your business on your terms. Why let the old ways hold you back when there’s a better way to lend? Book a free demo today and discover how Lendsqr fits into the story of your lending journey.